On July 18, Coca-Cola (NYSE:KO) released Q2 2006 earnings for the period ended June 30.
- Revenues slightly beat estimates, and EPS were $0.02 above expectations.
- A cost-of-goods-sold decline on a year-over-year basis, combined with a revenue increase, drove margin improvements.
- Latin America, East and South Asia, and the Pacific Rim were the best-performing regions.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q2 2006 |
Q2 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$6,440 |
$6,476 |
$6,310 |
2.6% |
|
Net Profit |
-- |
$1,836 |
$1,723 |
6.6% |
|
EPS |
$0.72 |
$0.78 |
$0.72 |
8.3% |
|
Diluted Shares |
-- |
2,352 |
2,401 |
(2.0%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2006 |
Q2 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
67.42% |
65.99% |
1.43 |
|
Operating Margin |
31.49% |
31.25% |
0.24 |
|
Net Margin |
28.35% |
27.31% |
1.04 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$4,130 |
$5,011 |
(17.6%) |
|
Accounts Rec. |
$2,593 |
$2,349 |
10.4% |
|
Inventory |
$1,624 |
$1,476 |
10.0% |
|
Liabilities |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$5,317 |
$4,288 |
24.0% |
|
Long-Term Debt |
$1,140 |
$1,110 |
2.7% |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q2 2006 |
Q2 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$2,762 |
$3,534 |
(21.8%) |
|
Capital Expenditures |
$626 |
$376 |
66.5% |
|
Free Cash Flow |
$2,136 |
$3,158 |
(32.4%) |
Find out why Fools always follow the money.
Related Companies:
- Pepsico (NYSE:PEP)
- Cott (NYSE:COT)
- Cadbury Schweppes (NYSE:CSG)
- Coca-Cola Enterprises (NYSE:CCE)
- Coca-Cola FEMSA SA (NYSE:KOF)
Related Foolishness:
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Coca-Cola is a Motley Fool Inside Value selection. Pop the cap on more bubbly value opportunities with a free 30-day guest pass.
At the time of publication, Nathan Parmelee had no position in any company mentioned. Fool rules are here.
